AUCyber Limited (ASX: CYB) announced a renounceable entitlement offer aiming to raise approximately $2.75 million before costs. Eligible shareholders can subscribe for 1 new share for every 3.57 existing shares held, priced at $0.06 per new share. The offer price represents a 24.5% discount to the 5-day VWAP of $0.080 and a 15.4% discount to the theoretical ex-rights price (TERP) of $0.071 as of March 24, 2025. Morgans Corporate Limited has been appointed as the lead broker to manage the offer.
The proceeds from the entitlement offer will be allocated to the company’s working capital and growth initiatives. Following a recent board transition, a cash forecast assessment determined the need for additional capital to fund operations and continued expansion. The board, in consultation with advisors, deemed the entitlement offer as the most practical funding option, recognizing the potential need for further funding in FY26.
Significant shareholder 5GN Networks Limited (5GN) intends to take up its full entitlement but will not participate in the shortfall. Consequently, 5GN’s voting power could increase to 91.757% upon completion of the offer, potentially leading to compulsory acquisition of remaining shares under the Corporations Act 2001 (Cth). Other eligible shareholders can apply for additional new shares under a shortfall offer. The offer is available to shareholders in Australia and New Zealand, with Morgans acting as nominee to sell entitlements for ineligible shareholders. The entitlement offer is renounceable, allowing shareholders to trade their rights. The offer is not underwritten. Key dates include the record date of March 25, 2025, and the closing date of April 8, 2025.
